PETALING JAYA: Small and medium enterprises (SMEs) have been given yet another lifeline to help tide them over the current lean period.
Bank Negara Malaysia has allocated RM5 billion for the financing facility, to be disbursed through various banks in the country.
Borrowers are entitled to a financing facility of up to RM1 million at an annual interest rate of 3.5%. The tenure is a maximum of 5.5 years.
In a statement issued today, RHB Banking Group said it has already approved the facility for more than RM500 million to over 700 applicants out of the 1,500 applications that have been received.
RHB said the financing facility is being distributed under its SMEs Financial Relief Assistance Programme to help companies hit by the Covid-19 pandemic.
The facility is to help them sustain their business operations, safeguard jobs and to support economic growth, it said in the statement.
According to its group managing director Datuk Khairussaleh Ramli, the wholesale and retail sectors received 31% of the approved loans amounting to RM155 million.
The manufacturing sector was allocated RM79 million, or 16% of the total and the balance went to SMEs from various services sector, Khairussaleh said.
He added that during the movement control order period, applications can be submitted through the banks SME Online financing platform.